For a long time now investing in the Bitcoin (BTC) was something I was thinking about but due to lack of time and the fear that it was too late I never get in on investing. But thanks to the French blogger Bob Jouy and his article Bitcoin, Ethereum… Parlons des crypto-monnaies! I finally did it and here is why and how I did it.
One important thing you need to be aware of is: Never invest money you can’t afford to lose. This is very important and also never borrow money to invest. If you’re not ready to lose everything you invested just don’t do it. Now let’s get into it.
A cryptocurrency is a “medium of exchange, a money, using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets.” Also known as digital currencies or alternative currencies or virtual currencies. The more famous one is the Bitcoin. It was launched by a person or a group, we don’t really know, but his pseudonym is Satoshi Nakamoto. The currency doesn’t depend on a central agency nor a government. The currency is decentralized and only depends on it own collective system and there is a defined amount of bitcoin so no government or agency can create more, unlike money. People can mine to find bitcoins but it’s impossible to add new bitcoins to the system. In total there are theoretical 21,000,000 BTC and 16,672,825 BTC are already in circulation as of November 2017.
Is Cryptocurrency a Good Investment?
Just as I said in the beginning, do not invest money you can’t afford to lose. There are the same risks in investing in cryptocurrencies and in investing in stock market. You can’t control it. It’s unpredictable and volatile but the Bitcoin and other cryptocurrencies are based on a mathematical scheme and this little detail make a big difference. Where stock-market is like gambling, cryptocurrencies are more like an active trading, in other words, you’re trying to guess how your investment will trade on a short-term.
Also, unlike in the stock-market you have to buy 1 share, with the bitcoin you don’t have to buy a whole Bitcoin to invest you can buy 0,007 BTC. And it’s where it becomes interesting. You can invest the amount you want.
How to buy Bitcoins and more
The fastest and easy way to buy some BTC is to do like me and visit Coinbase.com (If you use this link and buy or sell at least $100 we both earn $10 😉 )
To start you need to register on their website and follow their instructions. In the process, you’ll need to send them a copy of your ID card and make a small deposit from your bank account (be careful to follow the Coinbase’s instruction this step is to verify your bank information) to your Coinbase account in order to enable money transfer. You can also add your credit card to buy cryptocurrencies.
Of course, there are some fees when you’re doing transactions here there are:
- SEPA Transfert to your Coinbase account: FREE
- Buying cryptocurrencies in EUR from your Coinbase account: 1,49%
- Buying cryptocurrencies with your credit card: 3,99%
If you want to keep an eye on your investment you can download the Coinbase iOS app and manage your account from the app. From the app you can also buy two others cryptocurrencies: Litecoins and Ethereum
Why Did I Invest in BTC
The one thing I know is that many people got rich at the beginning when 1 BTC could be bought for $10. And every past year, I was thinking “I should have bought Bitcoin when it was cheaper” but it’s not too late to start this adventure. Also, the Bitcoin and the cryptocurrencies, in general, are fascinating as a cultural experiment but I see it as a way to make some money. Since I invested only €50 I won’t be able to buy my own private island in the Pacific but at least it will still be more than my traditional saving account. So it’s something I don’t regret even if one day I lose everything it will only be €50. But if I win I might win more than what I originally pay for. My expectation is to own at least €1.000 in 2 to 3 years. Maybe I have too high expectation but who knows!
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